This Case is aboutÂ FINANCIAL MANAGEMENT, GLOBALIZATION, PROJECT MANAGEMENT
PUBLICATION DATE: June 03, 2014 PRODUCT #: 214083-HCB-ENG
Provides an introduction to the areas of infrastructure financing and project finance, and gives a statistical summary of project-financed investments over time from 2009 to 2013. Illustration of project-funded investments comprise of the Kashagan oil field advancement in Kazakhstan (1997), the $1 billion Port of the Miami Tunnel (2007), $54 billion Gorgon liquefied natural gas project in Australia (2009), and $6 billion Oyu Tolgoi copper mine expansion in Mongolia (2014). Worldwide, companies funded the utilization of job, as well as a record $415 billion of capital expenditures using project finance in 2013 -investment has gradually increased at a compound rate of 8% over the previous 15 years despite several macroeconomic disasters.
This note includes four sections and accentuates mainly on private sector investment in infrastructure and industrial projects. The next section illustrates the development of the project finance from its commencement in the natural resources industry in 1970s, to U.S. power industry in the 1980s, to a much varied range of industry applications and geographic locations in the 1990s and the 2000s, and most recently to the infrastructure finance in 2010s.The next section gives a statistical summary of job-funded investment during the past five years (2009 to 2013) and looks at business, job, and participant particular data. The next section also provides recent data on infrastructure investments and public-private ventures. The concluding section discusses present and likely future trends.